SFX Uniting Divisions Under CMI, Aim to Leverage Lifestyle Synergies - Brief Article

Brandweek, June 4, 2001 by Kenneth Hein

Entertainment event marketer and producer SFX this week is forming a new lifestyle marketing agency, CMI.

A division of SFX, CMI will consist of three groups that had previously functioned independently of each other: SFX Corporate Consulting, CMI and SFX/Cotter Group.

Each division has its own unique attributes. SFX consulting specializes in strategic planning and development of programs that leverage SFX sponsorship opportunities. CMI creates "experiential" programs that "make a brand mobile" via sampling and other programs. SFX/Cotter specializes in motor sports marketing and public relations.

"We're coming together as a unified agency," said David Paro, svp-marketing SFX, who is general manager of CMI. "We're a full-service agency that can really attack a brand from a number of different touch-points. We're leaders in each area. We plan on blending these services around a lifestyle marketing model."

CMI will focus on lifestyle marketing events for big name companies such as Coca-Cola (which will have a strong presence at the Olympic Games).

Other CMI clients include heavy hitters such as Hershey, Kodak and Staples. The goal of these programs is to "tap into the emotions and pursuits that consumers follow in their daily lives," said Paro.

Tom Cotter, who was formerly founder and chairman of SFX/Cotter, and Lee Heffernan, previously CMI president, will both become managing directors of the new agency. Charlie Horsey, who was svp at CMI, will become svp-marketing and corporate development.

CMI has been in existence since 1982. The Cotter Group was formed in 1989 and SFX Consulting began in 1994.

Paro said he does not expect any bumps in the road toward assimilating all three veteran companies together.

"We're all in the client services business. The synergies are there and the cultures easy to blend," he said.

The new agency currently will have locations in Atlanta, Charlotte, N.C., East Rutherford, N.J., and Washington, D.C. New CMI offices are planned for the future as Paro is looking for "aggressive growth". The first location he is eyeballing likely will be overseas.